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Trade and agricultural employment linkages in general equilibrium modelling

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  • Vanzetti, David
  • Peters, Ralf

Abstract

Trade negotiators are frequently concerned about the possible negative effects of trade liberalisation on employment in specific sectors. The agricultural sector in developing countries has characteristics that make it different from industrial or service sectors. These characteristics are an informal labour force, low productivity, absence of regulations and a tie to land. These features affect adjustment costs. A global computable general equilibrium model, GTAP, is used to analyse employment and wage effects of trade liberalization in three developing countries — Indonesia, Bangladesh and Guatemala. The ability to fully utilize all resources, including labour, is important. The results highlight the advantage of a functioning and flexible labour market that can readily adjust to trade shocks.

Suggested Citation

  • Vanzetti, David & Peters, Ralf, 2013. "Trade and agricultural employment linkages in general equilibrium modelling," 2013 Conference (57th), February 5-8, 2013, Sydney, Australia 152182, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare13:152182
    DOI: 10.22004/ag.econ.152182
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    References listed on IDEAS

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    1. repec:wbk:wbpubs:6889 is not listed on IDEAS
    2. Ralf Peters & David Vanzetti, 2004. "Shifting Sands: Searching For A Compromise In The Wto Negotiations On Agriculture," UNCTAD Blue Series Papers 23, United Nations Conference on Trade and Development.
    3. E. Paul Durrenberger, 2012. "Labour," Chapters, in: James G. Carrier (ed.), A Handbook of Economic Anthropology, Second Edition, chapter 8, Edward Elgar Publishing.
    4. David Laborde & Will Martin & Dominique van der Mensbrugghe, 2017. "Measuring the Impacts of Global Trade Reform with Optimal Aggregators of Distortions," Review of International Economics, Wiley Blackwell, vol. 25(2), pages 403-425, May.
    5. Frank Ackerman & Kevin Gallagher, 2008. "The Shrinking Gains from Global Trade Liberalization in Computable General Equilibrium Models: A Critical Assessment," International Journal of Political Economy, Taylor & Francis Journals, vol. 37(1), pages 50-77.
    6. Boeters, Stefan & Savard, Luc, 2011. "The labour market in CGE models," ZEW Discussion Papers 11-079, ZEW - Leibniz Centre for European Economic Research.
    7. repec:ilo:ilowps:468155 is not listed on IDEAS
    8. Anderson, Kym & Martin, Will & Valenzuela, Ernesto, 2006. "The relative importance of global agricultural subsidies and market access," World Trade Review, Cambridge University Press, vol. 5(3), pages 357-376, November.
    9. Vanzetti, David & Peters, Ralf, 2008. "Do Sensitive Products Undermine Ambition?," 2008 Conference (52nd), February 5-8, 2008, Canberra, Australia 6044, Australian Agricultural and Resource Economics Society.
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    Cited by:

    1. David Vanzetti & Ralph Peters & Christian Knebel, 2017. "Non-Tariff Measures: Lifting CFTA and ACP Trade to the Next Level," UNCTAD Blue Series Papers 78, United Nations Conference on Trade and Development.

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